As part of the effort to accelerate the transition to a low-carbon resilient economy and enable the transition of 25% of the total loan portfolio to green investments by 2025, and also as part of the KCB Net Zero ambition, The KCB Foundation and the United Nations Institute for Training and Research (UNITAR) has partnered to promote the use of electric motors by boda-boda riders in Kenya.
The KCB Group is the largest financial services company in East Africa in terms of asset size. It had an estimated asset base of approximately Ksh 1.02 trillion at the end of H1 2021. The Group is headquartered in Nairobi, Kenya, with subsidiaries in Kenya, Rwanda, South Sudan, Tanzania, Uganda and Burundi. 2007, KCB . Foundation was established to implement the Corporate Social Responsibility programs of the KCB Bank Group and as a sign of commitment to sustainable development to alleviate poverty and improve well-being. According to their website, the KCB Foundation has so far invested an estimated 3 billion Kenyan shillings in community programs in Kenya, South Sudan, Rwanda, Tanzania, Uganda and Burundi. The KCB Bank Group is committed to sustainable development, prosperity and poverty alleviation to address the hardship, high poverty levels and interconnected challenges facing communities in East Africa.
The group also says it is aligning its green loan portfolio to make up at least 25% of its total loan portfolio by 2025, including moving forward by allocating capital and directing financial flows towards more investment and assets needed for the transition from low-carbon, climate-resilient resilient activities. In the Sustainability Report KCB Groups 2021, it states that “it aims to bring to market products such as green loans and services that will enable customers to reduce environmental and other indirect impacts and/or provide environmental benefits. The development and deployment of green financial products will promote the use of renewable energy, trade finance, smart agriculture, sustainable transport and green buildings.”
Here’s more about the KCB Foundations announcement partnership:
The program includes user acceptance testing, setting up a loan scheme for Boda Boda riders and delivering skills training through 2Jiajiri, SACCOs, associations, motorcycle dealers and various government departments to support the clean energy transition.
The pilot phase will start in Nairobi, Kajiado and Machakos provinces, and 150 motorcyclists will be onboard the program at a cost of approximately KES. 38.7 million funded by both KCB Foundation and UNITAR.
Speaking at the event, Paul Russo, CEO of KCB, noted that the partnership with UNITAR is part of the Bank’s multi-pronged approach to work with like-minded partners to support poverty alleviation and employment efforts in line with sustainable development needs. .
“Through the E-Mobility program with UNITAR, we want to make it possible for players in the transport sector to purchase and earn a living for electric motorcycles at an affordable price. At the same time, the Boda Boda drivers will play a key role in supporting low CO2 emissions into the environment. This is a goal that we are willing and willing to support as part of our long-term plans to protect the environment,” Russo said.
Pius Masinde, the Conduct and Discipline Officer at the United Nations, said: “This program will promote electric mobility and ultimately contribute to achieving several Sustainable Development Goals (SDGs) such as 1: End Poverty, 5: Gender Equality, 7: Affordable and clean energy, 8: decent work and economic growth, 13: climate action and 16: peace, justice and strong institutions. We look forward to scaling the program in 2023.”
According to the National Transport and Safety Authority, there were nearly 1.9 million motorcycles registered in Kenya in 2018. In 2021, the NTSA registered 285,203 motorcycles compared to the 186,434 registered motorcycles in 2017. The subsector provides more than a million direct jobs for riders earning approximately less than $10 a day. This translates into approximately Ksh60 billion in government revenue through taxes, duties and other charges annually.
I am very excited about all these developments. KCB appears highly focused and committed to its targets of at least 25% of its total loan portfolio by 2025. The transportation sector and electric mobility will be major beneficiaries of KCB’s sustainability commitment. Recently, KCB partners with Basigo Kenya to fund electric buses for public transport companies. Through the partnership, customers will receive up to 90% financing with an extended repayment period of 36 months, while supporting them to reduce their greenhouse gas emissions and improve their ability to respond to climate change through adaptation and mitigation measures. In addition, customers get access to built-in tracking and fleet management gadgets already installed on the electric bus, plus insurance financing. Charging, service and maintenance of the battery is also provided by BasiGo.
We will follow all these developments closely.
Image from KCB Group’s LinkedIn announcement.
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